Ways and Means

Tax Cuts and Jobs Act

Signed into law by President Trump on December 22, 2017, the Tax Cuts and Jobs Act (H.R. 1) overhauls America’s tax code to revitalize our nation’s economy and deliver historic tax relief to workers, families, and local job creators. By lowering taxes across the board, eliminating costly special-interest tax breaks, and modernizing our international tax system, the Tax Cuts and Jobs Act will help create more jobs, increase paychecks, and make the tax code simpler and fairer for Americans of all walks of life.

With this law, the typical family of four earning the median family income of $73,000 will receive a tax cut of $2,059.

CLICK HERE to learn how the law is already helping workers, families, and job creators in your state.

CLICK HERE to see how much tax relief the Tax Cuts and Jobs Act delivers to middle-income families in every Congressional district.

Learn why the new tax plan is good for America

Read the Law

Learn what the law does

Lowers individual taxes and sets the rates

at 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37% so people can keep more of their hard-earned money.

Significantly increases the standard deduction

to protect roughly double the amount of what you earn each year from taxes – from $6,500 and $13,000 under current law to $12,000 and $24,000 for individuals and married couples, respectively.

Continues to allow people to write off the cost of state and local taxes

– up to $10,000. Gives individuals and families the ability to deduct property and income taxes – or sales taxes – to best fit their unique circumstances.

Takes action to support more American families

Expanding the Child Tax Credit from $1,000 to $2,000 for single filers and married couples to help parents with the cost of raising children, and preserving the Child and Dependent Care Tax Credit and the Adoption Tax Credit.

Preserves the mortgage interest deduction

– providing tax relief to current and aspiring homeowners. For all homeowners with existing mortgages that were taken out to buy a home, there will be no change to the current mortgage interest deduction.

Provides relief for Americans with expensive medical bills

by expanding the medical expense deduction for 2017 and 2018 for medical expenses exceeding 7.5 percent of adjusted gross income, and rising to 10 percent beginning in 2019.

Eliminates Obamacare’s individual mandate penalty tax

– providing families with much-needed relief and flexibility to buy the health care that’s right for them if they choose.

Improves savings vehicles for education

by allowing families to use 529 accounts to save for elementary, secondary and higher education.

Simple, Fair "Postcard" Filing

Tax plan postcard Download

Today, American families spend countless hours and dollars each year just to file their taxes. Under the Tax Cuts and Jobs Act, all of that will change. The law takes action to simplify the code so dramatically that 9 out of 10 Americans will be able to file their taxes on a form as simple as a postcard."

Subscribe to Ways and Means Newsletter

Subscribe
Ways and Means Committee Seal

Press Releases

Brady on Fox News: Our economy is now returning to a pro-growth mode

Brady on CNBC: GDP, Middle-Class Tax Cuts, and the Economy

 

Brady Joins Fox Business to Discuss Tax Reform 2.0

Brady on CNBC: The centerpiece is permanence for families and small businesses

WASHINGTON, D.C. – This morning, House Ways and Means Chairman Brady (R-TX) joined CNBC’s “Squawk Box” to 

Resources

The Tax Cuts and Jobs Act: Policy Highlights

The Tax Cuts and Jobs Act: Taxpayer Examples

Learn More

In the News

Drew Ferguson: The benefits of tax reform are already visible

February 4, 2017 | The LaGrange Daily News

Tom Cole: Tax reform is working for employees and businesses

February 4, 2017 | Pauls Valley Daily Democrat

GREG WALDEN : Precisely the change Oregon needed out of Washington

January 29, 2018 | The Observer

Tax bill beginning to deliver bigger paychecks to workers

February 1, 2018 | The Associated Press

Tucked Into the Tax Bill, a Plan to Help Distressed America

January 29, 2018 | The New York Times

Mimi Walters: A tax plan for working people

September 5, 2017 | The Orange County Register